Aldi poised to overtake Co-op this week to become Britain's fifth largest grocer as sales double in four years

Aldi is poised to overtake the Co-op this week to become Britain's fifth largest grocer. It is a big step for the German discount retailer, putting it next in size to the so-called 'Big Four' supermarkets.

Figures due this week from leading market analyst Kantar are expected to show that Aldi attracts 6 per cent of the UK's spending on food, behind only Tesco, Asda, Sainsbury and Morrisons.

Sales at the budget chain last year reached an estimated £8.5 billion, having more than doubled in four years, with record sales over Christmas.

In the fast lane: Sales at the budget chain last year reached an estimated £8.5 billion

Bryan Roberts, at retail marketing consultancy TCC Global, said: 'Aldi and its German rival Lidl have shaken up the UK grocery sector, helped in no small part by the weaker economic environment.

'Aldi's latest growth is testament to the huge improvement it has made in its range and stores in the past two years, which has been warmly received by less affluent and middle-class shoppers alike.'

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Roberts said Tesco's launch of its low budget 'Farms' range, a key strategy in its turnaround under chief executive Dave Lewis, was a reaction to the success of Aldi.

But he warned that the discount retailer should be wary of moving too far from its successful formula.

He said the recent launch of bigger stores with more products could undermine Aldi's tried and tested strategy of keeping ranges simple.

Another industry source said of the new figures: 'This puts Aldi in the big league. It has arrived with a different strategy, and has achieved success without having to mimic the Big Four supermarkets.'

Aldi has opened almost 200 shops in the past three years and was the fastest growing supermarket by sales over the festive period.

This month it will open its 700th store, and plans another 300 by 2022 especially in the South of England.